VAT battle: Rivers government floored FIRS in Court

The Federal Inland Revenue Service has been defeated in the Federal High Court sitting in Port Harcour, Rivers State in a suit between it and Rivers State government over collection of Value Added Tax (VAT).

The revenue agency in suit no FHC/PH/CS/149/2020 asked the Court to order stay of execution on the earlier judgement of the court whkch stopped FIRS from collecting VAT as it was constitutionally the role of State governments.

Delivering judgement, Justice Stephen Dalyop Pam said it would be against the principle of equity to deny State governments from collecting VAT.

The judge averred that State laws as enacted with regards to VAT should be obeyed, saying that the only exception was when the particular law has been set aside by the Court of competent jurisdiction.

Dismisaing prayers of FIRS, the Judge described as committing and said it would not stand the test of time.

Lawyer to Rivers State government, Mark Agu in ectasy of delight commended the Court for standing for truth, saying VAT law has already been enacted.

Agu revealed that FIRS had approached the court with two prayers but that they withdrew the first prayer seeking for injunction and wanted the court to stay the execution of that judgement.

He said: “The first Defendant, FIRS, sent their appeal against the judgement of the Honourable court delivered wherein the court allowed the Rivers State Government to collect their VAT.

“Subsequently after the judgement Rivers State has its own law on that, the Rivers State Law on VAT No. 4, 2021. Having appealed, they were asking for an injunction and secondly asking for stay on the judgement.

“Today, the court has delivered its ruling dismissing the said application for stay, though, without cost.